CME Group Inc Class A

CME: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$587.00	Znls	Vcnnhxywh

CME Group Earnings: Strong Trading Volume Across All Asset Classes Drives Double-Digit EPS Growth

Michael Miller

Jul 24, 2024

Wide-moat-rated CME Group reported strong second-quarter earnings as the company enjoyed high trading volume growth across all asset classes. Revenue increased 12.7% from last year and 3% from last quarter to $1.53 billion. Meanwhile, diluted earnings per share increased 13% from last year to $2.42, though the company did benefit from one extra trading day in the quarter. As we incorporate these results, we do not expect to materially alter our $225 fair value estimate. We see the company as modestly undervalued at the current price, though we note that once interest rates begin to decline the firm will face headwinds on earnings growth.

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